Adriatic Metals Shares Climb After Takeover Bid by Dundee Precious Metals

June 16, 2025 04:43 PM AEST | By Team Kalkine Media

Adriatic Metals Shares Climb After Takeover Bid by Dundee Precious Metals — Image source: Shutterstock

Market Reaction Across Exchanges

The announcement, made late Friday, drove Adriatic Metals’ share price on the Australian Securities Exchange (ASX) up by 8.4% to AU$5.42 by mid-afternoon trading. On the London Stock Exchange (LSE), shares closed at £2.63, marking a 9.2% gain on the same day. This momentum reflects growing investor confidence in the potential synergies between the two firms.

Premium Valuation and Deal Structure

Under the terms of the agreement, Adriatic shareholders are to receive AU$5.56 per ASX share and £2.68 per LSE share. These figures represent notable premiums of 47.8% and 50.5%, respectively, over the prices before the offer period commenced on 20 May.

The acquisition will be executed via a UK scheme of arrangement and is expected to become effective in the fourth quarter of 2025. A mix-and-match facility is part of the transaction, giving Adriatic shareholders the option to receive either cash or new DPM shares—or a combination—tailored to their preference. The total cash component will be approximately £321 million, with 54.9 million new shares of DPM issued at a valuation of CA$20.33 per share, based on the 11 June closing price.

Strategic Synergies and Growth Outlook

The acquisition would bring Adriatic's flagship silver project in Vareš, Bosnia and Herzegovina under Dundee Precious Metals' expanding portfolio. According to executives from both companies, the merger is expected to create a stronger mining business with long-term value potential.

Laura Tyler, CEO of Adriatic, commented on the strategic alignment, citing shared strengths in asset quality and operational capabilities. Dundee's CEO, David Rae, also emphasized the opportunity to unlock above-average returns through this union.

This development comes at a time when the ASX200 index is showing increasing traction in the resources sector, reflecting growing interest in companies poised for growth within the commodities space.

As the deal progresses toward completion, market participants are likely to keep a close eye on regulatory steps and shareholder meetings scheduled over the coming months.

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